If P&C Insurance: Merger and Earnings Update

Completion of the Merger with Sampo P&C and Earnings Update

STOCKHOLM, SWEDEN


STOCKHOLM, Sweden, Feb. 8, 2002 (PRIMEZONE) -- Completion of the merger between If and Sampo P&C Insurance took place on January 2, 2002. Following a post-completion review period, all technical details of the merger were agreed between the owners of If on February 8, without any material deviations from what has been previously announced.

Following completion, a number of key steps have been taken. A fully pan-Nordic business area structure has been defined, and appointments of the top 50 managers have been made and announced. Today, Torbjorn Magnusson has been appointed President and CEO.

In line with the merger announcement on November 7, 2001, the shareholders on completion made capital contributions totalling SEK 2.9 billion. Varma-Sampo contributed EUR 174.0 million, corresponding to SEK 1.6 billion, via a directed primary share issue. Sampo, Skandia and Storebrand made cash injections of SEK 1.3 billion in total. SEK 2.4 billion is used to strengthen the equity capital. The remainder, MSEK 485, is used to reinforce the technical provisions, as agreed betweenthe parties and will be charged to the income statement in Q4 2001.

In addition, If will post restructuring charges and related transactions cost of MSEK 148.

In Q4, the claims development was negative, including a number of sizeable large claims. Seasonal effects contributed to the claims development.

Q4 stand-alone excluding Sampo P&C is estimated to show an operating result of minus MSEK 950, including the above-mentioned items.

If will issue the full 2001 year-end report on February 12.

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